Federal Student Aid, Department of Education.
Catalog of Federal Domestic Assistance (CFDA) Number: 84.268.
This notice is effective July 17, 2015.
The Chief Operating Officer for Federal Student Aid announces the interest rates for loans made under the William D. Ford Federal Direct Loan (Direct Loan) Program on or after July 1, 2015, but before July 1, 2016.
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FOR FURTHER INFORMATION CONTACT:
Ian Foss, U.S. Department of Education, 830 First Street NE., Room 114I1, Washington, DC 20202. Telephone: (202) 377-3681 or by email: email@example.com.
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Section 455(b) of the Higher Education Act of 1965, as amended (HEA) (20 U.S.C. 1087e(b)), provides formulas for determining the interest rates charged to borrowers for loans made under the Direct Loan Program including: Federal Direct Subsidized Stafford Loans (Direct Subsidized Loans); Federal Direct Unsubsidized Stafford Loans (Direct Unsubsidized Loans); Federal Direct PLUS Loans (Direct PLUS Loans); and Federal Direct Consolidation Loans (Direct Consolidation Loans).
Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans (collectively, Direct Loans) first disbursed on or after July 1, 2013, have a fixed interest rate that is calculated based on the high yield of the 10-year Treasury notes auctioned at the final auction held before June 1 of each year, plus a statutory add-on percentage (a “margin”). Therefore, while the interest rate determination for new loans will be different from year to year, each of these loans will have a fixed interest rate for the life of the loan. In each case the calculated rate is capped by a maximum interest rate.
The following chart contains specific information on the calculation of the interest rates for Direct Loans first disbursed on or after July 1, 2015, but before July 1, 2016. We publish a separate notice containing the interest rates for Direct Loans that were made in prior years.Start Printed Page 42489
Fixed-Rate Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans First Disbursed on or After 7/1/2015 but Before 7/1/2016
|Loan type||Student grade level||Cohort||Index rate||Margin (%)||Fixed rate (%)||Max. rate (%)|
|First disbursed on/after||First disbursed before||10-Year Treasury note
|Unsubsidized||Graduate and Professional Students||7/1/2015||7/1/2016||2.237||3.60||5.84||9.50|
|PLUS||Parents of Dependent Undergraduates||7/1/2015||7/1/2016||2.237||4.60||6.84||10.50|
|PLUS||Graduate and Professional Students||7/1/2015||7/1/2016||2.237||4.60||6.84||10.50|
If an application for a Direct Consolidation Loan is received by the Department on or after July 1, 2013, the interest rate on that loan is the weighted average of the consolidated loans, rounded up to the nearest higher 1/8 of 1 percent. These Direct Consolidation Loans do not have an interest rate cap.
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Dated: July 14, 2015.
James W. Runcie,
Chief Operating Officer, Federal Student Aid.
[FR Doc. 2015-17653 Filed 7-16-15; 8:45 am]
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